Daily Market News sharing from Everest Market

JOHANNESBURG--High unemployment, indebtedness and eroding consumer confidence are weighing on household consumption in South Africa, the central bank said Tuesday, adding strain to an already beleaguered economy.

The South African Reserve Bank said in its annual economic report that declining rate of domestic expenditure and household consumption are adding to pressure on an economy expected to grow just 2% this year, after expanding 2.5% in 2012.

Household consumption grew by 2.3% annually in the first quarter of this year, the slowest rate since at least 2010. That dragged down gross domestic expenditure overall, which expanded 3.5% annually in the first quarter after growing 4.1% annually in 2012.

The bank said slower growth in disposable income, high unemployment, indebtedness and waning consumer confidence were to blame for the falling rate of consumption growth. South Africa's unemployment rate is 25.2% and consumer confidence has dropped sharply since the middle of 2012.

(END) Dow Jones Newswires

July 23, 2013 04:14 ET (08:14 GMT)